Power Theory of Economics

217 Pages·1995·20.479 MB·English

by  Yasuma Takata (auth.)

POWER THEORY OF ECONOMICS
CLASSICS IN THE HISTORY AND DEVELOPMENT OF
ECONOMICS
General Editor: Michio Morishima, Emeritus Professor of
Economics, London School of Economics
In postwar years the discipline of economics has become
highly advanced by focusing upon issues which can be
expressed in mathematical terms and ignoring issues upon
which it is difficult to make axiomatic analysis. This series
aims to make available in English, texts which might well
have played a major role in the development of a more
balanced - not exclusively mathematical - economic theory
but for the fact they were written in a language other than
English. However, the series' interest will also embrace
mathematical and English-language works where these
appear to have been unduly neglected. The series will also
seek to make available in English important works that
present the experiences of non-English-speaking economies; it
is hoped that these will contribute greatly to making
economics more comprehensive and more widely applicable
to a range of world economies in the future.
Published titlesinclude:
Marco Fanno
THE MONEY MARKET
Giulio LaVolpe
STUDIES ON THE THEORY OF GENERAL DYNAMIC
ECONOMIC EQUILIBRIUM
Yasuma Takata
POWERTHEORY OF ECONOMICS
Power Theory of
Economics
Yasurna Takata
sometimeProfessor ofEconomics
Kyotoand Osaka Universities
Translated by Douglas W.Anthony
Foreword by Michio Morishima
M
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St. Martin's Press
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Acataloguerecordfor this bookisavailable
from the BritishLibrary.
ISBN978-1-349-24045-6 ISBN978-1-349-24043-2(eBook)
DOI10.1007/978-1-349-24043-2
10 9 8 7 6 5 4 3 2 1
04 03 02 01 00 99 98 97 96 95
First publishedinthe UnitedStatesofAmerica 1995by
ScholarlyandReferenceDivision,
ST.MARTIN'SPRESS,INC.,
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NewYork, N.Y.10010
ISBN 978-0-312-12626-1
LibraryofCongressCataloging-in-PublicationData
Takata,Yasuma,1883-1972.
Powertheoryofeconomics/ Yasurna Takata;translatedby Douglas
W.Anthony.
p. em.
Includesbibliographical referencesand index.
ISBN 978-0-312-12626-1
1.Econornics-s-Pohticalaspects. 2.Power(Socialsciences)
-Economicaspects. 3.Economichistory. 4.Economics. I.Anthony,
DouglasW. II.Title.
HB74.P65T3413 1995
338.9-dc20 94-1370
CIP
Contents
Series Editor's Introduction ix
Foreword:Yasuma Takata (1883-1971) xi
byMichio Morishima
PART I ANALYSIS OF POWER
1 Social Power 3
1 The meaning of social power 3
2 Internal and external power 4
2 Forms of Power 7
1 Six occupations and six concrete powers 7
2 The prestige of the nobility - on the autonomous
nature of nobleness 9
3 Constituents of the power of the nobility -
reverence for birth 16
4 The rise and fall of the power of military families
and the limits to their power's extent 21
5 The power of the bureaucracy - the hierarchy of
administrative authority 26
6 Religious power and intellectual power 30
7 The power of the rich - with particular reference
to the power of entrepreneurs 34
8 The formation of the power of economic groups -
trade unions and industrial confederations 40
9 Leadership power in group movements 42
10 'Wild-growing' powers lacking any social group 47
11 The purely unconscious distribution of power 50
3 Power and the Economy 55
1 Does economics determine politics? 55
2 An economy ruled by power - feudalism 59
v
vi Contents
3 Contemporary production relations and
innate social status 63
4 The law of correspondence between
social status and wages 65
5 Freedom and control in the economy 68
PART II POWER THEORY OF ECONOMICS
4 Vision and Analysis 73
1 Theories of power in the past 73
2 The significance of power theory 77
3 The utilitarian economy and the power economy 82
4 The first and the second approximation 86
5 The marginal productivity theory of wages 89
6 Unemployment and its causes 91
7 Criticisms of Hicks' theory 96
8 On involuntary unemployment 98
5 Criticisms and Counter-Criticisms 103
1 Response to the criticism that the nature of
power is non-quantifiable 103
2 Bohm-Bawerk's criticisms of power theory 108
3 Counter-criticisms - the dependent nature
of population 111
4 The supply of labour 114
(a) In the short run 114
(b) In the long run - the interaction between
economy and population 115
5 Anti-Bohm-Bawerk 120
6 Implications 123
1 Partial equilibrium 123
(a) Prices 123
(b) Wages 128
(c) Interest 132
(d) Rent 135
2 General equilibrium 139
(a) Von Bohm-Bawerk's and Knut Wicksell's
new wage fund theory 139
Contents vii
(b)Powerlessness of labour in the theory 150
(c) The theory of power equilibrium 152
3 Power equilibrium 158
(a) Keynes's theory of employment 158
(b)The liquidity function 161
(c) Unemployment and power equilibrium 163
4 Dynamics 164
(a) Trade cycle theory - criticisms of von
Hayek's theory 164
(b)The theory of economic development 167
(c) Marx's theory 170
(d)Schumpeter's theory 172
5 Conclusion 175
Postscript 179
Notes and References 181
Bibliography 189
Index 193
Series Editor's
Introduction
This series, with its designation 'development of economics'
has at least four areas of focus, though it would be too restric
tive to call them aims.
Since the last war economics has become 'mathematicized'
to what could be deemed an excessive degree, so much so that
mathematical models are incorporated into the analysis even
of questions where there is no need for mathematical argu
ment. As a result, those issues which cannot be expressed in·
mathematical terms have been all but forgotten. Moreover it
has become almost impossible to establish links between econ
omics and othersocial sciences, in which mathematics are little
used. This increasing use of mathematics has thus meant that
economics has become isolated; the isolation has in its tum
promoted mathematical inbreeding.
The net result is that the discipline of economics has lost
many of the capabilities which it formerly possessed. Moreover,
since such capabilities have been dispensed with in theselection
of specialists, it has become more and more difficult to shift
economics away from the pathalong whichit is now proceeding.
One effective means of correcting this tendency, and of giv
ing the contents of economics a better balance, is to dig out
some of the economics of the past, and to learn again from
those who have gone before us. In the earlier decades of this
century economics was not the overwhelmingly English-lan
guage - dominated discipline that it has become in the post
war period. There were top-class economics achievements in
French, German, Italian and other languages as well. My in
tention, therefore, is to select from the papers and books writ
ten in other languages some which I consider to contain useful
knowledge and suggestions, which may help to promote a more
balanced economic theory. By translating these works into
English, they will be made available to all. This is the first
ix
x Introduction
point we will take account of. It is also added that the series'
interest is not confined to non-English works; wherever un
duly neglected English works are found, proper consideration
will be given to them. Secondly, I will try to annex to the series
wherever possible critical biographies of scholars active in a
wide variety of fields, apart from mathematical economics, in
order better to learn from them.
This series is not, however, necessarily 'anti-mathematical'.
It is also the intention to include in the series works which
might wellhaveplayed a major role in the mainstream develop
ment of economics in the postwar years, but the misfortune
thatthey were writtenin alanguageotherthan English has caused
them to remain unknown. The first volume in the series is one
such work. This, therefore, is the third point we have in mind.
Finally, modem national economics have not all evolved in
an identical fashion. In Japan, for example, and in some other
non-English speakingeconomies, there have developed perfectly
viable and, indeed, efficient economic systems. Work to clarify
the structures of these kinds of economic system has been ac
cumulating/ but mostly in the language of the country itself. I
am also anxious, therefore, to incorporate into the series trans
lations of works in this area, and also research on the histori
cal experience of these economies.
Given the four areas of focus which I have outlined above,
the series as a whole will inevitably have a somewhat 'motley'
character. While the works may be somewhat disparate, though,
I want to build up a series in which all the volumes will prove
enjoyable and interesting to read. The endeavour involves a
greatdealoftranslation work, meaning thatpublication at regular
intervals is likely to be impossible. In addition, there are many
candidates whose work must be considered for inclusion. This,
of course, makes a great deal of work for a single editor, and
therefore it will take time for him to put the project into orbit.
My fervent hope, however, is that this series, which, among
other things, expresses my own philosophy on the need for a
more balanced economics, will succeed in arousing the interest
of both students and specialists in a wider economics, and
educating them in that economics.
MICHIO MORISHIMA